eToys.com

eToys.com was a retail website that sold toys via the Internet. It was established by a startup company of the same name in 1997. After an initial public offering in 1999, the company quickly shot up in value, becoming emblematic of the dot-com bubble. The company went bankrupt in 2001 and shut down soon thereafter. The etoys.com domain went through a number of changes of ownership afterwards, and has been owned by Toys "R" Us since February 2009.

eToys.com
IndustryToys
FateAcquired by Toys R Us
FoundedNovember 3, 1997 (1997-11-03)[1]
Defunct2009 (2009)
Headquarters
United States of America 
ProductsToys
ParentToys "R" Us
Websitewww.etoys.com/ 

History

eToys was launched in 1997 as an Idealab company.[2] In 1999, eToys held an IPO. Shares were issued at $20. At the end of the first day of trading, the stock closed at $76 a share.[3] eMarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured".[4] In 1999, the company was involved in a high-profile dispute with Swiss art site etoy. EToys attempted to seize the etoy.com domain from etoy on the grounds that it was confusingly similar to its own domain, but it relented after widespread Internet outrage.[5]

Bankruptcy

Around March 7, 2001, the Wall Street Journal reported that KB Toys acquired the bulk of eToys' remaining assets for $5 million.[6] Bain Capital owns KB Toys. The law firm Traub, Bonacquist & Fox represented the creditors in the Chapter 11 bankruptcy proceedings. Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold. This relationship became controversial when Gold was appointed CEO of eToys. Some complained there was a conflict of interest, though a judge later found no fault.[7][8]

Subsequent ownership

Nearly all the eToys assets were acquired by KB Toys in two separate bankruptcy auctions, then later sold to D. E. Shaw, a New York-based hedge fund. The eToys.com website was eventually reopened by eToys Direct Inc., a descendant of Internet startup and KB Toys partner Brainplay.com, and a subsidiary of Parent Company. It continued to market toys by mail order under the eToys name through both the website and printed catalogs. Parent Company and nine of its subsidiaries including eToys Direct filed for Chapter 11 bankruptcy on December 22, 2008.[6] eToys.com was acquired by Toys "R" Us in February 2009.[9]

gollark: Soul harvesters.
gollark: I refuse to count this.
gollark: ???
gollark: https://minoteaur.osmarks.net/list_of_isomorphisms_to_bee
gollark: We mostly just say "isomorphic to bee".

References
  1. "EToys.com WHOIS, DNS, & Domain Info - DomainTools". WHOIS. Retrieved 2016-07-26.
  2. "Idealab: Our Companies: eToys". Idealab. Archived from the original on 2016-02-03. Retrieved 2016-01-18.
  3. Cotriss, David (May 9, 2008). "Where are they now: eToys.com". The Industry Standard. Archived from the original on March 3, 2009.
  4. "eToys Named #1 Online Toy Store Website; eMarketer's Top 10 List Rates Outstanding Online General Toy Merchants". Business Wire. November 22, 2000.
  5. "EToys Relents, Won't Press Suit". Wired.com. December 29, 1999.
  6. Rosenbloom, Stephanie (December 30, 2008). "Parent Company, a Retailer, Files for Bankruptcy". The New York Times. Retrieved May 2, 2010.
  7. "Potential Conflict Problem for Bankruptcy Law Firm". White Collar Crime Prof Blog. July 26, 2005.
  8. Pereira, Joseph (July 25, 2005). "EToys Investors Claim Conflict At Law Firm". The Wall Street Journal.
  9. Anderson, Mae (May 29, 2009). "Toys R Us acquires troubled FAO Schwarz". Tulsa World. The Associated Press.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.